In the real estate market. Brokers defy recession
Poll: Abdullah Al-Salih
Real estate brokers face a number of challenges to win clients, and close deals, during the current period, due to a number of factors, most notably the continued slowdown in the residential sector, which is still subject to the adverse effect of rising interest rates, reaching its highest levels in more than two decades.
Real estate brokers are facing a number of challenges to win clients, and close deals, during the current period, due to a number of factors, most notably the continued slowdown of the residential activity, still subject to
Amlak real estate newspaper conducted a survey on the most prominent challenges facing real estate brokers and how to overcome them, as follows:
M: 4 factors for market stagnation and 3 challenges for brokers
M. Ahmed Al Juhani, a real estate broker with Claire Williams, said: The real estate market is currently slow, compared to previous periods, as a result of the current economic conditions, referring to the decrease in the number of offers and requests for real estate in the market, and explained that price fluctuations and instability indicate the caution of buyers and sellers at this time, despite this situation is considered normal in the real estate market cycle, and the situation may change over time.
M. Ahmed Al-Juhani, a real estate broker at Claire Williams, said. Al-Juhani explained that the increase in interest rates makes mortgage financing more expensive, which makes loans more expensive for buyers, and reduces the ability to buy, in addition to the lack of offers in some markets, which increases competition between buyers, and can raise prices further, and pointed to the impact of general economic conditions, globally and locally on the real estate market, and that all these factors together can lead to a recession in the real estate market, and make it less active than previous periods.
Al-Juhani said that the real estate market is less active than in previous periods. Al-Juhani pointed out that providing liquidity to complete the transaction is one of the most important obstacles facing the broker, especially since some buyers may rely on real estate financing, and he must direct efforts to ensure that sufficient financing is available to implement the transaction, as well as the lack of seriousness of buyers who are interested in the property and do not move to implement the transaction.
He said: The issue of agreeing on the commission is among the challenges facing the real estate broker, as the commission rate must be negotiated with the seller and the buyer, which can be a source of tension between the parties concerned.
Continue: As a facilitator of sales, a real estate broker must deal with these challenges professionally and efficiently, and look for appropriate solutions to ensure the successful execution of the transaction, pointing out the importance of utilizing social media effectively, posting useful and engaging content, photos and useful information about properties available for sale or rent, enabling the broker to attract the attention of potential customers.
He pointed out the importance of targeting the real estate broker's target audience and posting useful content, photos and useful information about properties available for sale or rent. He pointed out the importance of targeting the right audience on social media platforms, directing advertisements towards people who may be interested in buying or selling, in addition to the importance of responding quickly to customer inquiries and comments on social media platforms, which builds customer trust and increases the chances of interaction and cooperation.
M.Abdullah Al-Otaibi: The need for real estate is «permanent»... And the demand «does not stop»
M.Abdullah Al-Otaibi of "Athman Real Estate" explained that the real estate market by its nature does not stop or be affected much by any factors; because people need real estate at all times and places, but one of its activities "residential, industrial, agricultural, or commercial" may be slightly affected, either by a decrease or increase, but the sale or rental movement is always continuous.
He called on real estate brokers not to be preoccupied with the activity or stagnation of the market, because that is the role of the economic analyst, while the role of the broker is to execute deals based on customer requests, regardless of the state of the market, especially since the demand for real estate does not stop, but the type of active real estate may vary, once residential, another commercial, a third industrial or agricultural, and so on.
One of the most prominent issues is the movement of sales or rents. He explained that the most prominent issues facing the broker in completing the sale process are the ability to reach the target customer, the need to converge the market price and the target price of the property, in addition to the ability to conclude brokerage contracts with owners and buyers, and the practice of unlicensed real estate brokerage profession.
M. Al-Otaibi identified the steps to increase the productivity of the real estate broker for his work, including building good relationships, presence in real estate events and social networking sites, in addition to knowledge and access to regulations on an ongoing basis, and specialization in different real estate activities and fields.
